Correlation Between Vienna Insurance and FUYO GENERAL
Can any of the company-specific risk be diversified away by investing in both Vienna Insurance and FUYO GENERAL at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Vienna Insurance and FUYO GENERAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vienna Insurance Group and FUYO GENERAL LEASE, you can compare the effects of market volatilities on Vienna Insurance and FUYO GENERAL and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Vienna Insurance with a short position of FUYO GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vienna Insurance and FUYO GENERAL.
Diversification Opportunities for Vienna Insurance and FUYO GENERAL
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vienna and FUYO is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Vienna Insurance Group and FUYO GENERAL LEASE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUYO GENERAL LEASE and Vienna Insurance is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Vienna Insurance Group are associated (or correlated) with FUYO GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUYO GENERAL LEASE has no effect on the direction of Vienna Insurance i.e., Vienna Insurance and FUYO GENERAL go up and down completely randomly.
Pair Corralation between Vienna Insurance and FUYO GENERAL
Assuming the 90 days trading horizon Vienna Insurance Group is expected to under-perform the FUYO GENERAL. In addition to that, Vienna Insurance is 2.01 times more volatile than FUYO GENERAL LEASE. It trades about -0.23 of its total potential returns per unit of risk. FUYO GENERAL LEASE is currently generating about 0.31 per unit of volatility. If you would invest 2,420 in FUYO GENERAL LEASE on June 6, 2025 and sell it today you would earn a total of 120.00 from holding FUYO GENERAL LEASE or generate 4.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vienna Insurance Group vs. FUYO GENERAL LEASE
Performance |
| Timeline |
| Vienna Insurance |
| FUYO GENERAL LEASE |
Vienna Insurance and FUYO GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vienna Insurance and FUYO GENERAL
The main advantage of trading using opposite Vienna Insurance and FUYO GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vienna Insurance position performs unexpectedly, FUYO GENERAL can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in FUYO GENERAL will offset losses from the drop in FUYO GENERAL's long position.| Vienna Insurance vs. Transport International Holdings | Vienna Insurance vs. SPORT LISBOA E | Vienna Insurance vs. Ribbon Communications | Vienna Insurance vs. Sporttotal AG |
| FUYO GENERAL vs. United Rentals | FUYO GENERAL vs. WillScot Mobile Mini | FUYO GENERAL vs. ALD SA | FUYO GENERAL vs. ELEMENT FLEET MGMT |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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